Ventana Research Analyst Perspectives

Cloud computing has changed the fundamental economics of business software, bringing new capabilities within reach of large numbers of small and midsize companies for the first time. Cloud-based ERP, for example, enables many midsize companies that in the past might have continued to use an entry-level accounting package to have more capable and sophisticated systems. The investment in software and IT capabilities to implement an ERP system on-premises is considerable enough that midsize companies often put up with a less-capable one. As well, midsize companies can now have their own call center operations because cloud-based offerings that support these operations require substantially lower up-front investments and have significantly lower operating costs than their on-premises counterparts. Consequently, a company that once outsourced all of its call center activities now has a greater degree of control of this strategic capability, often at a lower overall cost. The economic aspects of adopting the cloud are compelling, but there are other reasons as well. In some business software categories, even if the company has the IT resources and money to manage it on-premises, it makes better business sense to obtain this capability as a service in the cloud. For example, expense management is not a strategic process, and software users are often operating outside the company firewall.

Analyst Perspective Policy

Ventana Research’s Analyst Perspectives are fact-based analysis and guidance on business, industry and technology vendor trends. Each Analyst Perspective presents the view of the analyst who is an established subject matter expert on new developments, business and technology trends, findings from our research, or best practice insights.

Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity and reviewed to ensure it delivers reliable and actionable insights. It is reviewed and edited by research management and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Analyst Perspective before it is published. If you have any issue with an Analyst Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com